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Question 5
Jane, a learner from Mambo SSS sells fat cakes her mother bakes at home. She calculated the cost of the ingredients that is needed to make one fat cake as follows: ... show full transcript
Step 1
Answer
To calculate the variable cost for making one fat cake, we will sum the costs of the ingredients and the labour cost:
Now, adding these amounts together:
egin{align*} ext{Total variable cost} &= 0,70 + 0,75 + 0,20 + 0,20 + 0,05 + 0,50 + 0,25 \ &= R2,50 \end{align*}
Thus, the variable cost for making one fat cake is R2,50.
Step 2
Answer
The table provided shows both total costs and income for different quantities of fat cakes. To find the breakeven point, we need to identify when total income equals total cost. By checking the values:
At 90 fat cakes, the income exceeds the cost. The breakeven point lies between 60 and 90 fat cakes. Inspecting further shows:
Thus, the number of fat cakes that Jane must sell to breakeven is 90 fat cakes.
Step 3
Answer
To draw the line graph based on the table provided:
From the table and graph, we concluded that Jane must sell approximately 90 fat cakes to achieve breakeven.
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